Prospex Oil And Gas Share Discussion Threads

[soulsauce] 17/12/2019 07:40

The acquisition is dependent on Pxog securing funding. I am not sure the market is going to make anything of it but I wish you well.

[theshareguru2] 17/12/2019 07:28

Let's see what the market makes of it gla

[soulsauce] 17/12/2019 07:24

Not sure it's a wow. They have to raise the money. Good luck in this market. They will get it but will come at a price.

[johncasey] 17/12/2019 07:13

WOW!!!

Prospex Oil and Gas PLC Acquisition of up to 49.9% of gas power project
17/12/2019 7:00am
UK Regulatory (RNS & others)

Prospex Oil And Gas (LSE:PXOG)
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Today : Tuesday 17 December 2019

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RNS Number : 0672X

Prospex Oil and Gas PLC

17 December 2019

Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil and Gas

17 December 2019

Prospex Oil and Gas Plc ('Prospex' or the 'Company')

Conditional Acquisition of up to 49.9% stake in operational gas power project in Spain

Prospex Oil and Gas Plc, the AIM quoted investment company, is pleased to announce the conditional acquisition of up to a 49.9% indirect stake in El Romeral, an integrated gas production and power station operation located in the Guadalquivir basin in southern Spain ('El Romeral' or 'Project'). El Romeral is comprised of three production licences (together the "Area"), on which three producing wells supply gas, through its own network, to a 100%-owned 8.1 MW power station. In addition, the Area contains two development locations and 11 very-low risk prospects with gross contingent and prospective gas resources of 5Bcf and 90 Bcf, respectively.

Based on current levels of gas production, electricity generation, and revenue per Mwh, the Project generates small amounts of free cash from revenue of c. EUR800,000 per year. There is the potential to increase the number of generating days at the Project (historically equivalent to five days per week) and in the medium-term increase utilisation of the generation equipment (current 22%) by sourcing new gas supplies from within the Project Area, specifically from its assigned 90 Bcf of very-low risk prospective resources. When gas was not a limiting factor the power station regularly produced c. 60,000 Mwh per annum, which would equate to a revenue of >EUR4.2 million per annum (based on current revenue per Mwh).

El Romeral is being acquired by Tarba Energia S.L ("Tarba") with funding provided by Tarba's shareholders, Warrego Energy Limited ("Warrego") and Prospex. Warrego will fund the initial consideration of EUR750,000. Prospex has three months to elect an ownership stake in the Project (up to 49.9%) and refund to Warrego the corresponding proportion of the initial consideration. Warrego will indirectly own the balance of the Project. The acquisition of Prospex's stake is conditional on Prospex securing funding for such investment.

El Romeral: existing gas production, multiple development opportunities, and an operational power station

-- Ten wells drilled since 1950s, including seven post-1983 which discovered gas:
o Three wells currently producing with gross 2P reserves of 0.30 Bcf

o Two shut-in gas wells with low cost workover potential

-- Large dataset of c. 550 km of 2D seismic supported by AVO analysis clearly identifies multiple follow on opportunities

-- Two development locations with 5 Bcf of gross contingent resources (as per 2019 independent reserves and resources report from Netherland Sewell & Associates ("NSAI"))

-- 11 prospects with 90 Bcf of gross, unrisked prospective resources (as per the same NSAI report), thought to have a very low geological risk (Chance of Success >70% in most cases)

-- Profitable El Romeral power station operating 16h/d provides immediate revenues
o Constructed in 2001-2002 at an approximate cost of EUR10 million

o Currently operating at c. 22% capacity offering significant upside potential

o Consumes c11,000 scm/d in a typical generating day

o Generates monthly revenues c. EUR65,000, via sales to the Spanish electricity grid

o Low-cost maintenance contract in place with equipment vendor General Electric

Multi-well drilling programme at El Romeral offers low cost, low risk opportunity to substantially scale up production

-- Planning and permitting process for three well campaign expected to commence in Q1-Q2 2020
-- Shallow low cost wells
-- Low cost route to commercialisation via tie-in to Project-owned power station
Acquisition leads to step-up in Prospex's 2020 production profile to five producing gas wells across its portfolio, which could generate over 9,000,000 scm net in 2021

-- Prospex on track to have interests in five producing gas wells in 2020:
o Three existing wells at El Romeral

o Bainet-1 well on 50% owned Suceava Concession in Romania which continues to perform in line with average production rate of 15,000 scmpd (530 mscfd) assumed by Joint Venture for 2019 budgeting purposes

o Podere Maiar-1 well on 17% owned Podere Gallina licence in Italy which is expected to commence production in 2020 at rates up to 150,000 scmpd (5,300 mscfd), subject to regulatory approvals and installation of production equipment

Prospex non-executive Chairman, Bill Smith, said, "With three producing wells, an 8.1 MW power station and gross reserves, contingent and prospective resources of 0.3 Bcf, 5 Bcf, and 90 Bcf respectively, the El Romeral gas power project not only promises revenues from day one, but also significant upside potential. Located in a proven hydrocarbon region with very low geological risk, it is the substantial development opportunity, specifically the combination of the power station operating at only 22% capacity and the presence of two undeveloped discoveries and 11 prospects, which excites us most. Based on current and forecasted annual revenue, the economics for Tarba and in turn Prospex are expected to be favourable for an efficient return on investment with major scope for significant upside by exploring the very low risk 11 prospects.

"Our expected 2020 production profile, subject to completing the investment in the Project, will be centred on five gas wells in three projects in Romania, Spain and Italy, once the Selva field comes on stream. This would represent a fivefold increase on 2019 and, combined, we anticipate these five wells have the ability to produce over 9,000,000 scm net to Prospex over the course of 2021. With our joint venture partner, we plan to apply for permits for three new wells at El Romeral in 2020. At the same time, we will continue our technical work programme to de-risk the independently estimated 830 Bcf gross prospective resources (best estimate) at the Tesorillo project in Spain.

"We have been saying for some time that we believe our current market cap represents a fraction of Prospex's underlying value. Our asset base could soon include an interest in a gas power station and associated infrastructure which cost EUR10 million to install, material interests in four producing gas wells, and a stake in a fifth well in Italy which is expected to be brought online in 2020. The value case behind Prospex is, in our view, very clear."

[blueblood] 16/12/2019 16:22

WfT is going on in Spain and at Selva. Complete lack of comms from BoD killed this share.

[blueblood] 16/12/2019 12:21

A year don't you mean....boring

[ccr1958] 13/12/2019 16:45

Another week of nothingness.

[blueblood] 06/12/2019 11:14

So what not moving anywhere till fat Ed tells us what the current position and plans for each project are. Will we be generating revenue from Selva in 2020? What progress has been made in last 18 months in Spain? Are we looking to drill more wells in Rumania? Are we allowed to know what he has been doing for last 12 months whilst we have paid his salary?

[blueblood] 28/11/2019 07:59

That may be but the BoD are just as bad with there complete lack of proper updates!

[johncasey] 27/11/2019 17:16

its all linked mate..they know what shares we are all in and they play em like a fiddle to trigger stops..they see a popular share like EUA under pressure today and they'll target other shares the same investors are in

[johncasey] 27/11/2019 16:47

thats crooked AIM for you

[ccr1958] 27/11/2019 16:41

No trades, and 5% drop ... WTF.

[johncasey] 27/11/2019 00:07

warrego expecting to spud first well in spain 2020

[ccr1958] 25/11/2019 17:48

I been in and out of this for years ,right now I well in . At least we had a little bit of action lately ...

[blueblood] 23/11/2019 11:18

Selva will transform company but will they deliver in 2020 given its in Italy!

[johncasey] 23/11/2019 10:45

PLENTY of cash left plus income from romanian well..no funding neccessary..italy big revenue due in 2020..when will the market wake up..i'll keep adding around 0.1p

As at the end of August 2019, the Company held cash balances of £319,539

[blueblood] 22/11/2019 10:00

BoD are to blame for non existent comms. Have told us jack about Spain for over a year

[johncasey] 22/11/2019 09:27

notified the FCA about this criminal activity...have some names passed on to me

[johncasey] 22/11/2019 09:26

DEFINITELY BEING naked shorted...thats why volume increases then they lift the price then short it again..been going on for months now

[johncasey] 20/11/2019 00:51

dont forget BLOE..could be the ace in the pack if they get drilling right this time